The Nigerian National Petroleum Company (NNPC) has signed a new production sharing contract (PSC) with French energy giant TotalEnergies for two licences in the Niger Delta. The agreement marks a significant milestone as the first of its kind since the introduction of Nigeria’s 2021 Petroleum Industry Act.
Announced this week, the deal represents the first deepwater agreement signed by an international oil company (IOC) in Nigeria in more than a decade. It signals renewed confidence in the country’s upstream oil sector following years of regulatory uncertainty.
The 2021 Petroleum Industry Act was designed to modernize Nigeria’s oil framework, improve transparency, and attract investment in exploration and production. Officials say the new contract model is intended to ensure fairer revenue sharing between the government and investors.
NNPC described the agreement as a breakthrough that will unlock additional value from the country’s rich offshore reserves while boosting government revenue and strengthening partnerships with international operators.
TotalEnergies, a long-standing player in Nigeria’s energy sector, reaffirmed its commitment to supporting the nation’s petroleum industry while pursuing cleaner and more sustainable operations.
Industry experts believe the deal could pave the way for more investment in deepwater projects, which are seen as crucial to maintaining Nigeria’s position as Africa’s leading oil producer.
The signing also demonstrates Nigeria’s determination to restore investor confidence after years of declining output and stalled projects.
Energy analysts say the agreement may serve as a benchmark for future contracts, particularly with other international oil companies considering long-term commitments in the country.
With this landmark signing, Nigeria is positioning itself to attract fresh capital, expand production capacity, and ensure stability in its oil sector under the new regulatory regime.
The move underscores the government’s strategy of balancing foreign investment with national interest as it seeks to maximize returns from its natural resources.